In a shift that resonates with the decisions of participating artists and public sentiment, South by Southwest (SXSW) has announced that the festival will proceed without sponsorship from the U.S. Army and weapons manufacturers in 2025. A post on the SXSW website clarifies that this change is part of a wider revision of their sponsorship model, stating, "After careful consideration, we are revising our sponsorship model. As a result, the US Army, and companies who engage in weapons manufacturing, will not be sponsors of SXSW 2025," KXAN reported.

The decision follows a concerted boycott by over 80 artists and speakers who, just days before the 2024 festival, withdrew in protest of the military's prominent sponsorship role and America's involvement with Israel's military actions, according to KXAN. The artists moved to perform at unofficial SXSW events, and at a pro-Palestinian rally, to voice their dissent. This movement was catalyzed when Kneecap, an Ireland-based rap group, declared the sponsorship situation "depraved" in light of the Gaza conflict, prompting them to cancel their participation.

Governor Greg Abbott shared his response to the artist pullouts on social media, voicing a strong message of support for the military in Texas. SXSW issued a statement not aligned with the governor's stance, "SXSW does not agree with Governor Abbott." They detailed their respect for artists' rights to free expression and underscored the necessity of confronting humanitarian crises and repressive regimes. The defense industry's contributions to technology were also highlighted for being a potential force for change, with SXSW adding, "These institutions are often leaders in emerging technologies, and we believe it's better to understand how their approach will impact our lives," a sentiment obtained from a KVUE report.

The Army had previously expressed pride in its association with SXSW, particularly for the prospects of meeting with tech innovators and leaders, as stated by U.S. Army spokesperson Matt Ahearn, "We’re proud to be a sponsor of SXSW, and to have the opportunity to showcase America’s Army." However, the weight of the artist and public backlash prompted consideration from SXSW, leading to the eventual termination of these sponsorships. SXSW continues to reinforce its dedication to human rights and plans to host the festival in Austin from March 7–15, 2025, with registration beginning on August 6. Businesses and corporations interested in sponsorship opportunities can apply through the SXSW website.